Rashtriya Ispat Nigam Limited (RINL), the 2nd largest state controlled Pig iron producer and exporter, has finally been able to wind up an export deal for the 1st time in FY 14.
The beginning of Q2 FY 14 has proved to be good in comparison to the 1st quarter which was not favorable for exports market.
The company has finally decided to award the 30,000 tons Basic grade (Si 1.0%) Pig iron export tender, this morning.
The deal has been finalized with LG International (South Korea) at US$ 372/MT FoB Vizag Port; last date of delivery is 20th of August.
Price bids opened on the 19th of July which was to happen on the 22nd. This happened at the bidder's request, who was the only participant in the tender.
It was difficult for RINL to get rid of the cargo. It extended dates thrice and finally received a response after a month's time
This tender was floated on the 6th of June and technical bids opened on the 15th of June initially, receiving no response.
Factors such as weak Rupee, falling Scrap prices and Pig iron in international market, RINL's expectations of US$ 380-390/MT FoB and stock with importers resulted in no buying interest for the July shipment.
A big sigh of relief for RINL since it was holding this cargo 31st March onward
Stemcor (London) had earlier denied to take deliver of a delayed shipment (Date of delivery was 31 March 2013) of the same material.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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